Fiberglass World, Inc.

Construction Manufacturer Business Plan

Market Analysis Summary

The industry of roofing, siding, and installation is a large one. Total annual sales in this industry amount to approximately $11 million and are projected to remain steady, if not increase. One reason for the prosperity of this industry is because there is such a large market. The company is primarily targeting the construction industry, where sales total $124,953 million annually.

Market Size Statistics

Estimated number of U.S. establishments

3,245

Number of people employed in this industry

35,179

Total annual sales in the industry

$11 million

Average employees per establishment

11

Average sales per establishment

$5.6 million

4.1 Market Segmentation

The roofing and siding industry is only a part of the overall construction industry, which includes contractors that perform almost any function of housing creation and alteration. Therefore, an accurate estimate of nationwide demand for Fiberglass World's products would include the entire construction industry. This is broken up into the following segments:

This segment is comprised of companies that are involved in the smallest housing projects. However, the sheer size of the segment means that this will be the segment providing the majority of sales to Fiberglass World.

Market size statistics--Residential construction, nec

General contractors primarily engaged in construction (including new work additions, alterations, remodeling, and repair) of residential buildings other than single-family houses. This includes hotels, motels, apartments, and multi-family homes.

Estimated number of U.S. establishments

25,201

Number of people employed in this industry

114,523

Total annual sales in this industry

$25 million

Average employees per establishment

5

Average sales per establishment

$1.1 million

Market size statistics--Nonresidential construction, nec

General contractors primarily engaged in the construction (including new work additions, alterations, remodeling, and repair) of nonresidential buildings other than industrial buildings and warehouses. This includes commercial, institutional, religious, and amusement and recreational buildings.

Estimated number of U.S. establishments

44,505

Number of people employed in this industry

540,550

Total annual sales in this industry

$205 million

Average employees per establishment

12

Average sales per establishment

$4.9 million

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own business plan.

Need real financials?

4.2 Target Market Segment Strategy

The company is primarily targeting the construction industry, which are establishments primarily engaged in the wholesale distribution of roofing, siding (except wood), and insulation materials. Residential and commercial construction projects are at an all-time high and will continue to increase for years to come. It is important to realize that we have a very unique and much-needed product. The standard materials available are asphalt shingles, organic shingles, fibered cement shingles, metal roofing, clay tiles, concrete tiles, slate tiles, cedar shingles, recycled tile roofing, and solar shingles.

Our product is entirely new, and we are introducing it into this industry: fiberglass insulative architectural roof tiles, (Fiberglass Plate). The average costs of the above products vary. While Fiberglass Plate is more expensive, it also offers an insulation factor that all other products do not incorporate. This effectively reduces costs for separate insulation products.

4.3 Industry Analysis

Market Analysis by Specialty (8-digit SIC Code)

SIC Code

SIC Description

No Bus.

% Total

Total Emps.

Total Sales

Avg. Emps.

Avg. Sales

5033-0000

Roofing, siding, and insulation

1,012

31.2

11,012

$3,058

11

5.8

5033-0100

Roofing and siding materials

731

22.5

8,326

$3,834

12

8.2

5033-0101

Asphalt felts and coating

51

1.6

534

$36.9

10

1.1

5033-0102

Felts, tarred

1

0

5

$.9

5

.9

5033-0103

Roofing, asphalt and sheet metal

402

12.4

4,648

$1,655

12

7.5

5033-0104

Shingles, except wood

10

0.3

132

$29

13

3.2

5033-0105

Siding, except wood

329

10.1

2,775

$647

8

3.3

5033-0200

Insulation materials

379

11.7

2,789

$814

8

3.0

5033-0201

Fiberglass building materials

104

3.2

2,656

$118.5

27

2.2

5033-0202

Insulation, thermal

220

6.8

2,247

$438

10

3.7

5033-0203

Mineral wool insulation materials

6

0.2

55

$3

9

.7

Total/Average

3,245

100

35,179

$10,637

11

5.6

Note: Not all establishments have a specialty. Sales figures are in millions.

4.3.1 Competition and Buying Patterns

Fiberglass Plate Products will be marketed initially in the Southern region of the United States. This selling area will utilize our entire production capability. The construction industry is on the move and we intend to have our percentage of this long lasting industry. Our past marketing shows a place for Fiberglass Plate and also shows a tremendous demand for these products. Both products are in the completed development stage and are ready for manufacturing.